Danone, Abraaj Acquire Fan Milk

PARISDanone and The Abraaj Group announced a partnership agreement where Danone will join Abraaj in the acquisition of Fan Milk International.

"This transaction represents a major step in Danones expansion in Africa. Fan Milk is a company with a unique business model driven by a neighborhood sales and distribution platform working through 31,000 independent vendors. Danone is already present in North and South Africa, and we will now be able to develop the dairy product market in West Africa," Emmanuel Faber, Danone co-chief operating officer said.

Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group, said: The acquisition of Fan Milk represents the largest FMCG private equity transaction in Sub Saharan Africa, outside South Africa. We look forward to partnering with Danone in order to accelerate the growth and penetration of Fan Milks portfolio of leading consumer food brands across West Africa."

The Abraaj Group had previously announced its agreement to acquire 100% of Fan Milk through one of its Funds in June 2013. Abraaj and Danone will now respectively acquire a 51% and 49% stake in Fan Milk International. Under the agreement, Danone will in the coming years gradually acquire a controlling stake in the business.

Earlier this year, Danone acquired YoCrunch and Happy Family, as well as entering into partnership with Starbucks to develop specialty yogurt lines.